INDUSTRIAL production posted a double-digit growth in December and for the whole of 2016 because of higher output in petroleum products, food manufactures and transport equipment, the National Economic and Development Authority (NEDA) said on Friday.
More needs to be done to unlock the full potential of the sector to provide quality jobs to Filipinos, the NEDA said.
The Volume of Production Index (VoPI) for manufacturing increased by 23 percent in December from 5 percent in the same month in 2015, the latest Monthly Integrated Survey of Selected Industries (MISSI) released by the Philippine Statistics Authority (PSA) on Friday showed.
The Value of Production Index grew by 19.4 percent, from a 2.7 percent decline in December 2015.
For 2016, the VoPI grew by 14.4 percent from 2.5 percent in 2015.
“The manufacturing sector is performing very well. Increases in the purchases of capital and durable goods contributed to the increase and further indicate that there is business and consumer confidence in the domestic economy,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement.
Transport equipment production grew by 34.3 percent and its value by 35.6 percent.
Construction-related manufactures sustained the upward trend, primarily in response to the increase in demand for both residential (19.2 percent) and non-residential buildings (27.3 percent) during the third quarter of 2016.
Food manufacturing grew by 35.1 percent, the highest production volume growth recorded since 2013. Its value of production also increased by 37.7 percent, driven by domestic demand during the holiday season and higher production value of vegetable oil and animal fats.
The petroleum subsector grew by 63.2 percent in terms of volume, a complete reversal from the 34.2 percent decline year-on-year.
Pernia believes much can still be done to realize the industrial sector’s potential to provide quality and stable jobs.
The proposed Philippine Development Plan 2017-2022 enumerates strategies to boost the manufacturing sector, according to NEDA.
“We must further encourage the expansion of the capacity of existing firms, entry of new ones and facilitate linkages across firms and sectors. The use of science, technology and innovation must also be promoted. We must also enhance the competencies of our labor force to produce high-quality and competitive products,” he said.